RBI files affidavit in Bombay HC on pleas challenging withdrawal limit imposed on PMC depositors

Last Updated: Tue, Nov 19, 2019 15:41 hrs
PMC Bank (ANI photo)

Mumbai (Maharashtra): The Reserve Bank of India (RBI) on Tuesday filed a detailed affidavit in the Bombay High Court on a batch of petitions filed by the depositors of the Punjab & Maharashtra Co-operative Bank (PMC) challenging the limit imposed by it on the withdrawal of money.

The RBI also provided an affidavit copy to the petitioners regarding the steps it aims to take to protect their interest. The matter will now be heard on December 4.

In September this year, the RBI restricted the activities of the PMC Bank for six months and asked it not to grant or renew any loans and advances, make any investment or incur any liability after an alleged fraud of Rs 4,355 crore came to light.

Subsequently, the RBI capped the withdrawal limit for the PMC Bank depositors to Rs 1,000 which was gradually increased to Rs 50,000.